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Employee Rewards Programs: What They Are, Benefits, and Types
Safira Adnin
October 7, 2024

Let’s face it—keeping your team engaged and motivated can be tough, especially when everyone’s busy and targets are high. But here’s the good news: having a well-thought-out employee rewards program can make a huge difference. We’re not just talking about bonuses or fancy awards—it’s about creating a workplace where your people feel appreciated and motivated to do their best.

Curious about what employee rewards programs are, why they matter, and what types work best? Let’s break it down in a way that’s easy to digest!

What Exactly Are Employee Rewards Programs?

In a nutshell, an employee rewards program is a system that helps you recognize and reward your team for their efforts. It could be anything—from a quick shoutout during meetings, to offering bonuses or giving extra time off. The goal? To let your people know their hard work isn’t going unnoticed.

Here’s why it matters: According to Gallup, companies with engaged employees see a 21% increase in profitability and 41% lower absenteeism. So, when your employees feel valued, they not only stay, but they also perform better. That’s a win-win, right?

Why Employee Rewards Programs Are Worth It

Still wondering if it’s worth the effort? The numbers speak for themselves. Let’s break down why an employee rewards program should be part of your strategy:

1. They Boost Engagement

Everyone loves a bit of recognition, right? When employees feel appreciated, they’re more likely to be engaged and motivated. According to Quantum Workplace, companies with recognition programs see 31% lower turnover. That’s huge when you think about how hard it can be to keep good talent.

2. They Help You Retain Top Talent

Let’s face it, nobody likes to be taken for granted. In fact, 44% of employees leave their jobs because they don’t feel recognized, according to Achievers. Having a consistent recognition program can help you keep your best people around longer.

3. They Improve Your Company Culture

A strong recognition culture can make a massive difference in how people feel about coming to work. When recognition becomes part of your daily routine, it creates a more positive and collaborative environment. According to SHRM, companies with good recognition programs see a 50% improvement in team relationships and overall morale.

4. They Drive Productivity

It’s simple—when people know they’ll be rewarded for doing a good job, they’re more likely to go the extra mile. The Incentive Research Foundation found that companies with effective rewards programs experience a 22% boost in productivity.

5. They Attract Top Talent

In a competitive market, offering more than just a paycheck can give you an edge. According to Glassdoor, 60% of employees say benefits and rewards are a big part of why they choose to join a company. So, a good rewards program doesn’t just keep your current employees happy—it also helps you bring in new ones.

Types of Employee Rewards Programs (What Works)

Now that we’ve talked about the benefits, let’s get into the different types of rewards programs you can implement:

1. Monetary Rewards

The most straightforward type—cold, hard cash. Employees always appreciate monetary rewards because they’re immediate and tangible.

  • Bonuses: Offering performance-based bonuses is a great way to motivate people to hit their targets. McKinsey found that companies using financial incentives see a 30% performance boost.
  • Profit-sharing: Some companies give employees a share of the profits, helping them feel more invested in the business’s success.
  • Gift cards: A simple but effective way to say thank you—gift cards to popular retailers or experiences are always a hit.

2. Non-Monetary Rewards

Money isn’t everything, though. Non-monetary rewards can sometimes have a bigger emotional impact.

  • Recognition Awards: Things like “Employee of the Month” or peer-nominated awards can go a long way in making someone feel special.
  • Public Acknowledgement: Giving a shoutout during meetings or sending a company-wide email to recognise someone’s contributions can make employees feel appreciated.
  • Tangible Gifts: A small, thoughtful gift—whether it’s a cool gadget or a personalised item—can show that you’ve put thought into the recognition.

3. Experiential Rewards

These rewards focus on giving employees memorable experiences rather than physical gifts or cash. They’re increasingly popular, especially with younger employees.

  • Paid Time Off: Rewarding top performers with extra vacation days is a great way to show appreciation.
  • Travel Incentives: Some companies offer travel opportunities as a reward for top achievers—whether it’s a company retreat or an all-expenses-paid holiday.
  • Team-building Activities: A fun team-building day out or an office retreat can not only reward employees but also strengthen team bonds.

4. Professional Development Opportunities

Investing in your team’s future is one of the best ways to show them you care.

  • Training Programs: Offering employees the chance to attend courses or get certifications helps them grow—and makes them more likely to stay with you. According to LinkedIn Learning, 94% of employees say they would stay longer at a company that invests in their career.
  • Mentorship Programs: Pairing employees with mentors helps them develop both personally and professionally.
  • Conference Attendance: Sending employees to industry conferences lets them expand their knowledge and network, which can be highly motivating.

5. Peer-to-Peer Recognition

Sometimes, recognition from a fellow colleague feels just as good, if not better, than a manager’s praise.

  • Recognition Platforms: Using tools like Bonusly, employees can give each other shoutouts or points for doing a great job, which can be redeemed for rewards. According to Bonusly, companies that use peer recognition platforms see a 31% increase in employee engagement.
  • Kudos Boards: Whether it’s digital or physical, having a space where colleagues can leave kind words or praise for each other builds a sense of community.

How to Create a Successful Rewards Program

Ready to roll out your own rewards program? Here are some tips to make sure it hits the mark:

  1. Align Rewards with Your Company Values: Make sure your rewards program reflects what’s important to your company. For example, if teamwork is key, reward collaborative efforts.
  2. Offer a Variety of Rewards: Not everyone is motivated by the same things. Offer a mix of monetary and non-monetary rewards so there’s something for everyone.
  3. Be Consistent: Recognition works best when it’s consistent. Make sure employees know what’s expected of them and how they can earn rewards.
  4. Ask for Feedback: Regularly check in with your team to see how the program is working for them and adjust if needed.

Build your borderless team with Glints today

Glints TalentHub is our complete talent solution that covers all aspects of talent acquisition, management, and development. Our team can help you access the extensive talent pool across Southeast Asia and build great teams quickly and affordably. Simply schedule a call with us and our dedicated experts will be thrilled to guide you in your journey towards building a borderless team.


This article is brought to you by Glints TalentHub. Leading companies are actively building their borderless teams in Southeast Asia, Taiwan, and beyond. However, the prospect of going borderless can be daunting due to complex regulations and cultural ambiguities. With Glints TalentHub, you’ll have a dedicated team of in-market legal, HR, and talent experts by your side at every step of the way.

Glints TalentHub offers an end-to-end, tech-enabled talent solution that encompasses talent acquisition, EOR, and talent development. We empower businesses to leverage the strengths of regional talent efficiently to build high-performing, cost-efficient teams.

Schedule a no-obligation consultation with our experts to receive a tailored proposal today!

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